Agricultural producers in the frontline areas face significant logistical challenges. The recent reduction in railroad transportation tariffs will help farmers in the frontline areas, but they still need government support.
This information was stated by Oleksandr Buiukli, Executive Director of the First Ukrainian Agricultural Cooperative (FUAC), established within the Ukrainian Agri Council, at the Grain Ukraine conference.
“We unite 80 farmers, some of whom are located in the frontline areas. I want to thank the farmers who do their work despite all the difficulties,” he said.
Oleksandr Buyukli expressed his gratitude to the Ministry of Agrarian Policy for reducing railroad transportation tariffs by 30% for the frontline regions: “This is at least 5 UІD per ton, which is a significant support for farmers. Before the war, the price was stable due to logistics, but now the situation has changed due to the loss of 11 million tons of storage capacity.”
The director of the FUAC also noted the significant contribution of the Armed Forces of Ukraine to the security of the Black Sea routes. “If earlier the freight to China cost USD100, now it is USD50. These are the funds that remain with the farmers,” emphasized Oleksandr Buiukli.
He also shared his experience of working during the war: “A year and a half ago, we were transporting products through Izmail and Reni, which was a real challenge. Today we have raised the level - we are trying to load the ship on June 10 with the participation of 15 farmers who will have access to the foreign market. The price of the export contract is 197 USD per ton, but taking into account logistics, farmers will receive 187 USD.”
Oleksandr Buiukli emphasized the need for state support for farmers: “We need help from the state, including freezing loans, so that farmers who ensure food security can rebuild their farms. People are coming back, and we need to provide them with opportunities to create new agribusinesses.”
Executive Director of the FUAC noted that the state could allocate 200,000-300,000 hectares of land in safe regions to experienced farmers to set up new agribusinesses.
Such measures, in his opinion, would help to preserve and restore the agricultural sector, which is critical for Ukraine in wartime.
Tuesday, 4 June 2024